Created:
19 October 2017
NATIONAL Transmission
Corp.’s (TransCo) proposal to supervise the Visayas-Mindanao interconnection
project is beyond the scope of the Energy Regulatory Commission (ERC) and
should be discussed by the state-led agency with the power system operator, an
ERC commissioner said.
“[On the supervision
over the project], maybe that’s something that they have to take up with NGCP
(National Grid Corp. of the Philippines) and not with ERC,” said Gloria
Victoria C. Yap-Taruc, one of four ERC commissioners, told reporters on the
sidelines of an industry seminar.
Ms. Yap-Taruc said what she knows so far about TransCo’s plan was confined to what its president said during a forum on Monday. She said she has yet to go through TransCo’s “manifestation.”
Melvin A. Matibag, TransCo president and chief executive officer, earlier this week said he had received a positive response from World Bank on his plan to borrow from lending agency to fund the cost of the Visayas-Mindanao project.
The ERC on Sept. 5, 2017 announced that it had granted provisional authority to NGCP to implement the project for around P51.7 billion.
The project covers the linking of the power grids via Cebu in the Visayas and Dipolog City in Mindanao. The converter stations in Visayas and Mindanao will be located in Sibonga, Cebu and Aurora, Zamboanga del Sur, respectively.
Mr. Matibag later said that he had called the attention of the ERC to look into some components of the project.
“I’m asking for the comparison of the eastern side and the western side because their (NGCP’s) excuse for putting that on the western side [is] there are marine activities,” he said earlier this month.
Ms. Yap-Taruc said TransCo has not yet stated “in definite terms” how it would be able to fund the project.
“Basically, NGCP is the responsible party under the concession agreement and under their franchise,” she said.
“And then TransCo is saying that based on ‘our study we intend to put it up or fund the project,’” she said.
But she said the proposals put forth by TransCo on how it would fund the project have “no certitude.”
She was referring to TransCo’s plan to secure official development assistance (ODA) for the project, and to take it out from the Malampaya fund or the government’s share from the revenues of the offshore Palawan gas-to-power project.
She said the use of the Malampaya fund needs some amendments to the law, adding that TransCo is still working on the ODA.
Ms. Yap-Taruc said what she knows so far about TransCo’s plan was confined to what its president said during a forum on Monday. She said she has yet to go through TransCo’s “manifestation.”
Melvin A. Matibag, TransCo president and chief executive officer, earlier this week said he had received a positive response from World Bank on his plan to borrow from lending agency to fund the cost of the Visayas-Mindanao project.
The ERC on Sept. 5, 2017 announced that it had granted provisional authority to NGCP to implement the project for around P51.7 billion.
The project covers the linking of the power grids via Cebu in the Visayas and Dipolog City in Mindanao. The converter stations in Visayas and Mindanao will be located in Sibonga, Cebu and Aurora, Zamboanga del Sur, respectively.
Mr. Matibag later said that he had called the attention of the ERC to look into some components of the project.
“I’m asking for the comparison of the eastern side and the western side because their (NGCP’s) excuse for putting that on the western side [is] there are marine activities,” he said earlier this month.
Ms. Yap-Taruc said TransCo has not yet stated “in definite terms” how it would be able to fund the project.
“Basically, NGCP is the responsible party under the concession agreement and under their franchise,” she said.
“And then TransCo is saying that based on ‘our study we intend to put it up or fund the project,’” she said.
But she said the proposals put forth by TransCo on how it would fund the project have “no certitude.”
She was referring to TransCo’s plan to secure official development assistance (ODA) for the project, and to take it out from the Malampaya fund or the government’s share from the revenues of the offshore Palawan gas-to-power project.
She said the use of the Malampaya fund needs some amendments to the law, adding that TransCo is still working on the ODA.
No comments:
Post a Comment